Publishing insiders worry that a decisive court ruling benefiting retailer
Amazon.com Inc. will undermine an industry already struggling with the transition to e-books.
A
federal court Thursday approved a settlement between the Justice
Department and three of the country's largest publishers, who were
accused of colluding to fix prices for e-books. Hachette Book Group,
HarperCollins Publishers and Simon & Schuster were alleged to have
conspired with
Apple Inc. to control the price of e-books sold online as part of a larger effort to end Amazon's online dominance.
The
two elements of wrongdoing alleged in the case — publishing competitors
conspiring to limit competition in the e-book market, and fixing the
retail price — are a sign of an industry grappling with disruptive
change.
"Here is an example of what I
would call a desperate last stand by publishers to protect themselves
against a paradigm shift in publishing — and they failed," said Jonathan
Kirsch, a Los Angeles-based author and publishing attorney.
"By
putting the legal approval on this settlement, the district court has
pushed us over a certain kind of cliff. In terms of the real-life
experiences of publishers, authors and readers, this will represent a
fundamental change in how books are published and sold," Kirsch said.
The
decision has thrown the publishing world into turmoil. The Authors
Guild, a 100-year-old organization representing writers, issued a
statement warning that the ruling would turn the clock back to 2010,
when Amazon sold 90% of all e-books. The retailer's share dropped to 60%
after Apple's introduction of the
iPad and iBookstore in 2010 and Barnes & Noble's unveiling of the Nook e-reader.
From the Los Angeles Times